(IANS): The Centre on Wednesday notified 100 per cent inflow of foreign direct investment into the telecom industry via the automatic route.
Accordingly, Department for Promotion of Industry and Internal Trade, via ‘Press Note No 4 (2021 Series)’ said the Centre reviewed the extant of FDI policy on telecom sector and made amendment under the Consolidated FDI Policy Circular of 2020.
Under the amendment, 100 per cent FDI via the automatic route will be allowed into telecom services including telecom infrastructure providers ‘Category-I’.
In financial parlance, under this route no prior permission from the Centre or RBI is required by a foreign entity before making an investment.
Last month, the Union Cabinet allowed for 100 per cent FDI under the automatic route.
On its part, India Inc welcomed the move.
According to Lt Gen Dr S.P. Kochhar, DG, COAI: “The FDI approval will help the industry to build a robust telecom sector for new India. Through the amendment in license agreements, telecom service providers will be eased off the huge burdens of bank guarantees and will enable the availability of more funding for the expansion of the telecom network and build a ‘Digitally Connected India’.”
“Further, ‘SACFA’ clearance based self-declaration will facilitate ease of doing business and will help in the faster rollout of services to the citizens.”